State-run generation utility NTPC has started the process of procuring farm stubble pellets to fuel its Dadri power plant with the aim of giving farmers a profitable alternative to burning crop residue, identified as a major contributor to air pollution in the National Capital Region, and opening up a new market for rural entrepreneurship to raise income of cultivators.

The company is seeking supply of 1,000 tonnes per day of the farm residue-based fuel in the form of pellets or 'torrefied' briquettes, 500 tonnes each a day, and offered a two-year contract. The price for pellets has been capped at Rs 5,500 per tonne and Rs 6,600 a tonne for ‘torrified’ briquettes. On an average, one acre of cropping yields about two tonnes of stubble or straw.

Power prices are unlikely to rise since mixing of pellets up to 10% of the total fuel in a power plant is possible without affecting its efficiency in terms of gross calorific value (heating property including impurities in fuel). NTPC has completed test runs at the Dadri plant and is open to gradually expand use of farm residue-based fuel at its other power stations.

In terms of improving air quality, Delhi-NCR and northern India, in general, will actually see the benefit of NTPC's move in the next cropping season as harvesting is over in most parts and new crop has been sowed.

The move comes a little over two months -- a period when Delhi and its surroundings experienced very high levels of air pollution -- of the government asking India's largest generator to look at using farm stubble as a fuel to check their burning. Based on NTPC's experience, the power ministry is inclined to turn use of farm residue-based fuels into a policy for all power plants in the country.